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The Entertainment Job Creation Program provides a tax credit on annual W2 wages to approved entertainment companies (known as a Qualified Entertainment Company or “QEC”) that create well-paid jobs for Louisiana residents.
for each new job whose QEC payroll is equal to or greater than $45,000 per year, up to $66,000 per year
for each new job whose QEC payroll is equal to or greater than $66,000 per year, but no greater than $200,000 per year
Submit application and fees (fees will be calculated upon submission of the application.) An application isn't considered received until the applicant submits a deposit.
If approved, OEID/LED enters into a contract with applicant.
When W2s are issued, applicant requests final certification of credits from OEID.
CPA performs a review and provides an expenditure verification report to OEID.
OEID reviews and if approved, issues a final certification letter.
Claim credits on Louisiana tax return or elect transfer back to State for 90 percent of face value (requires a 2% transfer fee which results in an 88% net).
All incentive program rules are in the Louisiana Administrative Code maintained by the Office of the State Register. For rules, go to Part 1, Chapter 63.
The Secretary of the Department of Economic Development may consider program applicants meeting the following criteria:
The following business types are ineligible:
1. Applicant completes and submits the online application with supporting documents and fees in their entirety to the Office of Entertainment Industry Development (OEID).
2. Prior to entering into a contract, the applicant shall submit a deposit of the production expenditure verification report fee of $7,500 for a company with qualified expenditures projected to be between $250,000 and $5 million. The applicant will be assessed the department's actual cost for the production expenditure verification report fee each year. The maximum fee for the report shall be $15,000 per year. OEID shall directly assign a CPA to prepare an expenditure verification report on an applicant’s payroll expenditures. The applicant shall make all records related to the tax credit application available to OEID and the CPA.
3. After application review and consideration of all discretionary factors, OEID and the Secretary of LED may execute a contract with an applicant for a period of up to five years, providing the terms and conditions for its participation. The contract shall set forth an estimate of jobs and payroll per calendar year which will be tentatively allocated to the QEC for annual cap computation purposes. A five-year renewal contract may be authorized if the applicant has complied with all of the terms of the contract.
4. The applicant executes the contract and returns it to OEID.
1. Once the first year covered under the QEC’s contract is finished and W2s issued by the QEC, the QEC shall notify OEID that it is ready to proceed to audit. The audit must be performed by an independent CPA licensed in Louisiana, assigned by OEID. The audit must conform to GAAP/GAAS. A final certification letter (issuance of credits) or denial will be issued by the department within 120 days of receipt of a complete audit package.
2. The QEC shall be responsible to provide any supporting or requested documentation to the CPA.
3. OEID may require additional support and/or verification for certain expenditures.
4. After all supporting documentation is received and reviewed, OEID and LED will issue a "Final Certification" letter approving the qualifying expenditures and certifying the tax credits.
5. The credits can now be redeemed or transferred to the state for 90% of the face value.
Executive Director of Louisiana Entertainment